RE: News22 Mar 2024 16:57
Reading up on their fund performance, have done very well - this is what they had to say last quarter:
"However, the other side of the ledger, where the poor performers reside, was dominated by our investment in S4 Capital, a digital advertising and media company.
Our investment in S4 began in 2022 as a contrarian opportunity in a company with several self-inflicted, but resolvable, wounds. It has since evolved into an investment in a company facing the first significant digital advertising downturn since the company’s founding in 2018.
The company, which remains in the process of restoring the fullness of its reputation with investors, while now simultaneously facing industry headwinds, has reached valuations we view as confusingly low. We do not view the company to be permanently impaired and, frankly speaking, the severity of cyclical headwinds facing the digital advertising industry today are actually quite mild, in comparison to many other cyclical industries in which we have experience.
We are also generally pleased with management’s seriousness of purpose in remedying previous operational shortcomings.
Our reaction has been to continue to add to our holdings of S4. We would also note that, as contrarian value investors, we are accustomed to investing in companies, industries, and countries with dark clouds hovering above them at the time of investment, only to see those clouds darken further before finally dissipating. In fact, that pattern describes a number of our most successful long-term investments.
We remain optimistic that S4 may one day be described in such a way."
https://www.thirdave.com/strategy-tavfx
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